LouNDebNC: Iran’s Currency Craters to Historic Low Following Trump’s Victory
Iran’s already ailing national currency cratered after Donald Trump’s election victory, heralding tough times for Tehran’s economy as the former president prepares for another term in the White House.
By Adam Kredo
Iran’s already ailing national currency cratered after Donald Trump’s election victory, heralding tough times for Tehran’s economy as the former president prepares for another term in the White House.
The Iranian rial traded at 703,000 to 1 American dollar early Wednesday, an all time low, before settling at 696,150 to a single dollar, according to the Associated Press. The steep drop signals fears in Iran that Trump will enter office prepared to level harsh new economic sanctions on the country—and enforce active ones—as punishment for its yearlong war on Israel.
As the Iranian rial tanked, the American stock market surged, with the Dow Jones Industrial Average jumping more than 1,300 points to 45,557 as of mid-day trading. The Nasdaq grew by more than 430 points, hitting 18,875 in the afternoon.
During his first stint as president, Trump decimated Tehran’s economy with sanctions, ushering in a “maximum pressure” campaign that the Biden-Harris administration subsequently dismantled in a bid to entice Iran into a revamped version of the 2015 nuclear accord. Under the administration, Tehran was given access to upwards of $100 billion in cash resources, helping it arm a slew of regional terror proxies that have wreaked havoc on Israel and American military positions in the Middle East.
With Trump’s second term looming over Tehran, the country will have to make tough choices about its war on Israel. Iran has already promised a crushing response to Israel’s first direct attack last month but could decide to hold fire given Trump’s track record of support for the Jewish state. In 2020, Trump greenlit the assassination of Quds Force commander Qassem Soleimani.
Iran said Wednesday that it is not concerned by Trump’s election and saw both candidates as enemies.
“The election of the U.S. president has nothing to do with us. The general policies of the U.S. and Iran are constant,” Iran’s foreign ministry said in a statement. “It doesn’t matter who becomes the president in the United States because all the necessary planning has been made in advance.”
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Tishwash: Financial expert: The rise of the dollar is temporary and the economy is what determines its path
Financial expert and former director of the Central Bank of Iraq, Mahmoud Dagher, confirmed on Thursday that the rise of the dollar is temporary, and that the economic aspect is what determines its path, away from politics.
Dagher told Shafaq News Agency, “The dollar in local markets is affected by global markets if it rises, considering that the dollar is the same whether it is in Iraqi markets or global stock exchanges.
But what is important is the local currency being affected by it inside Iraq.”
He added, “The change that is currently taking place in the dollar is temporary and will soon return to its normal state after things stabilize,” indicating that “the economic aspect is what determines the value of the dollar against other currencies, not the political aspect.”
The dollar rose with Donald Trump’s victory in the US elections, which affected the decline in global oil prices
